This would be an off market transaction, no local agents involved, but still full due diligence for inspections and appraisal. 10% down, 700 +/- credit scores, and good DTI.What's the feasibility of me loaning her the balance of the loan after downpayment, creating a note, and then once it has a three or six month history of performance selling that note?

It can be difficult to get the entitlement back even if you pay all your current VA loans off. 

I know this is a difficult part of the city and I wanted to get some insight from other peoples' experiences.

I own a few properties along the blue line and have loved seeing the prices appreciate but it makes it difficult to add to the portfolio.

Freddie has a small balance loan program, $1M minimum loan amount. 10 year fixed I believe.

One of the more difficult parts would be that you are guaranteeing that you would always be managing your short-term rental business from a distance. 

Trying to flip OOS can be difficult as contractors may not be reliable, and if you cannot be there to coordinate it, things may fall apart.

But there is an agent involved, so gets a little more difficult. 

Those homes are all 3, 4, or 5 bedroom, which makes it difficult to comp. 

While wholesaling is a very difficult way to get started in real estate, it's not impossible.